The global oil and gold markets experienced significant fluctuations last week due to geopolitical developments in the Middle East, concerns about oil supply disruptions, reduced inflation worries, and the Federal Reserve's interest rate policy. As a result, the prices of Brent and West Texas Intermediate oil slightly decreased by the end of the week, while gold ended the week with a slight increase despite the rise in the value of the dollar and U.S. interest rates.
Decrease in Brent and West Texas Intermediate Oil Prices
The price of Brent Crude oil at the beginning of the review period on September 11, equivalent to Shahrivar 20, was $104.61 per barrel, and by the end of trading on September 18, equivalent to Shahrivar 27, it reached $103.87. Thus, the price of Brent decreased by $0.74, equivalent to 0.71%, during this period, showing an overall downward trend. During this time, the highest daily price of Brent oil was $109.97 and the lowest price was $101.53.
West Texas Intermediate (WTI) oil also decreased from $100.05 on September 11 to $99.53 on September 18, ending the week with a decrease of $0.52, equivalent to 0.52%. The highest recorded price of U.S. crude oil during this period was $106.75, and the lowest price was $95.71.
Increase in Gold Prices and Economic Factors
The futures price of gold, based on published data, was $4,408.90 at the beginning of the review period on September 11, equivalent to Shahrivar 20, and reached $4,415.90 by the end of trading on September 18, equivalent to Shahrivar 27. Therefore, the price of gold increased by $7, equivalent to 0.16%, during this period, showing a slightly upward trend. The highest recorded price of gold during this period was $4,444.90 and the lowest price was $4,273.
Gold reached its highest level in a week yesterday (Friday) and was on track to record its first weekly increase in the past four weeks. One of the supporting factors for gold was the decrease in oil prices, which in turn reduced concerns about ongoing inflationary pressures. However, the increase in the value of the dollar hindered further growth in gold. The dollar index reached its highest level in over seven weeks this week, and the strengthening dollar made gold purchases more expensive for holders of other currencies.
